CALGARY, Jan. 15, 2020 /CNW/ - YSS Corp.™
("YSS" or the "Company") (TSXV: YSS) (WKN:
A2PMAX), a premier Canadian cannabis retailer operating under
the YSS CannabisTM and Sweet Tree CannabisTM
brands, is pleased to provide a strategic and operational
update and to announce that YSS Grande Prairie has passed the final
Alberta Gaming, Liquor and Cannabis Commission inspection.
YSS currently has 16 operating stores in Alberta and Saskatchewan that will grow to 17 upon opening
of YSS Grande Prairie, expected in early February.
Strategic and Operational Update
On December 12, 2019, the
Government of Ontario released a
framework that will, over time, transition cannabis retail in the
province from the current lottery-based system to an open market
with an expected approximately 20 new Retail Store Authorizations
per month initially, starting in April of 2020 (the "Ontario
Framework"). With a population of over 14 million,
Ontario offers the greatest growth
potential in Canada.
YSS has applied for its Retail Operator License with the Alcohol
and Gaming Commission of Ontario
("AGCO") which opened for applications on January 6, 2020 and the Company is actively
advancing expansion plans into Ontario. To open a store,
operators must also obtain a store-specific AGCO Retail Store
Authorization, applications for which will open on March 2, 2020, with approximately 20 per month
expected to be released commencing in April of 2020.
With the news of the Ontario Framework, YSS elected to
re-allocate human and capital resources to Ontario and has deferred the construction of
three Alberta stores previously
planned to open in the first quarter of 2020. This is
reflective of the Company's corporate strategy of remaining nimble
within this dynamic industry to facilitate the balance of new
opportunities, measured growth and capital controls.
YSS is leveraging experience gained in the roll-out of cannabis
retail in Alberta and will
continue to focus on quality opportunities that demonstrate
potential for quick payback as well as long-term profitability in a
mature market. YSS is in the process of screening over 100
potential locations to supplement the single lease the Company
currently holds in Ontario.
The initial strategy for YSS will be to identify and pursue at
least three premier locations until greater clarity around the
licensing timeline is understood. In addition, similar to the
strategy deployed in western Canada, YSS will evaluate strategic
partnerships and acquisition opportunities in Ontario as the market develops.
Board of Directors Update
YSS also announces the resignation of Sonny Mottahed from the Company's board of
directors to focus on other buisness interests. "Sonny has
been a significant supporter of YSS and valuable contributor to the
board since its formation in June
2018," said James Miller,
Chairman of YSS. "On behalf of the board of directors, the
management team and our shareholders, we thank Sonny and wish him
the best in his future endeavours."
YSS is committed to becoming the trusted destination for
cannabis in Canada by creating and
delivering a premier in-store retail experience through
understanding customer demands and data, implementing standardized
procedures, investing in brand and retail design, offering
interactive in-store technology, and developing an experienced and
welcoming team. The Company views the continued investment in
customer experience as instrumental to establishing customer
loyalty, brand recognition and ultimately, future business.
Additional Information
For information on store locations and opening dates please
visit www.ysscorp.ca, www.sweettreecannabis.com and follow
both our operating brands on social media.
For additional information regarding YSS and to access an
updated corporate presentation, please see the Company's website at
www.ysscorp.ca/investors. Corporate and financial
filings are available under the Company's profile on SEDAR
at www.sedar.com.
About YSS Corp.
With retail operations under the YSSTM and
Sweet TreeTM brands, YSS Corp. is a premium
cannabis retailer and the trusted destination to explore and
discover cannabis in Canada. YSS operates in locations across
Calgary, Edmonton, Red
Deer, High River,
Okotoks, Spruce Grove, Stony
Plain, Vermilion,
Lloydminster, Vegreville and Swift
Current under the YSS and Sweet Tree brands. In
addition, YSS maintains a strategic portfolio of under
construction, secured and prospective locations that represent
future organic growth potential for the Company. YSS
management brings proven expertise across capital markets, retail
operations, hospitality, cannabis, financial management and a
strong commitment to deliver shareholder value by leveraging
high-quality opportunities within this exciting new industry.
The YSS retail experience is built on our five fundamental pillars:
convenience, value, selection, team, and above all else, trust.
Forward-Looking and Cautionary Statements
This news release may include forward-looking statements
including opinions, assumptions, estimates, the Company's
assessment of future plans and operations, and, more particularly,
statements concerning: YSS' retail cannabis business strategy,
including organic growth and strategic activities; the Company's
intent to expand its retail operations into Ontario its strategy related thereto and
timing thereof; the Company's secured location in Ontario and intent to pursue additional
high-quality locations in Ontario
with compelling revenue and gross margin contribution potential;
the Company's continued focus on providing a trusted destination to
explore, discover and learn more about cannabis, including
education relating to CBD and cannabis 2.0 products; the opening,
licensing, inspection, construction and planning of YSS or Sweet
Tree retail stores and the timing thereof; submitting applications
to the Alcohol and Gaming Commission of Ontario (AGCO) for prospective retail stores
in Ontario; the ability to
identify and obtain high-quality prospective retail locations in
Ontario; the ability to build, own
and operate additional retail cannabis stores; the receipt of
necessary permits and licenses to operate stores in Ontario; and the ability to capitalize on
potential opportunities that may arise and the ability to exercise
thereon. When used in this document, the words "will,"
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "should," and similar expressions are intended to be
among the statements that identify forward-looking statements. The
forward-looking statements are founded on the basis of expectations
and assumptions made by the Company. Forward-looking statements are
subject to a wide range of risks and uncertainties and, although
the Company believes that the expectations represented by such
forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially
from those in the forward-looking statements including, but not
limited to: successfully applying to the AGCO for Retail Operator
License and subsequently Retail Store Authorizations, regulatory,
municipality and other third party approvals not being obtained in
the manner or timing anticipated, including but not limited to AGCO
inspections and licenses and those relating to cannabis 2.0
products; the ability to implement corporate strategies; the state
of domestic capital markets; the ability to obtain financing;
changes in general market conditions; industry conditions and
events; the size of the recreational cannabis market; changing
customer habits; the availability of cannabis-retail products from
licensed producers, including new cannabis formats; government
regulations, including future legislative and regulatory
developments involving recreational cannabis; competition from
other industry participants; and other factors more fully described
from time to time in the reports and filings made by the Company
with securities regulatory authorities. Please refer to the
Company's annual information form and management's discussion and
analysis for the year ended December 31,
2018 for additional risk factors relating to the Company,
which can be accessed under the Company's profile on
www.sedar.com.
Except as required by applicable laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statements.
This news release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about the Company's revenue and gross margin, which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. FOFI contained
in this document was approved by management as of the date of this
document and was provided for the purpose of providing further
information about YSS' future business operations.
YSS disclaims any intention or obligation to update
or revise any FOFI contained in this document, whether as a result
of new information, future events or otherwise, unless required
pursuant to applicable law. Readers are cautioned that the FOFI
contained in this document should not be used for purposes other
than for which it is disclosed herein.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
SOURCE YSS Corp.